In May, the market dynamics experienced a significant shift due to a capacity shortage and increased freight rates, like during the pandemic. This trend persisted until early June, with spot rates rising and carrier bookings reaching high. This change was not a minor fluctuation; it surprised both carriers and shippers, highlighting the volatility of the maritime sector.
When airlines presented their first-quarter results in April, no one anticipated this situation; a gradual market decline was expected due to the continued increase in capacity throughout 2024. However, port congestion in Asia, which had worsened in recent months, reached a critical point in May, causing a significant withdrawal of capacity from the market as ships waited to dock.
Despite the market challenges, demand for shipments from Asia to Europe and North America has increased. According to Container Trade Statistics, the global market, measured in TEU, recorded a 24% year-over-year increase in April, a more significant rise than during the peak of the pandemic in early 2021.
The market supply is insufficient to meet the demand, reflecting a dynamic observed during the pandemic. The number of inactive ships decreased to 0.6%, matching the lowest level recorded at the pandemic’s peak. Ship charter rates have also increased significantly, and the requested duration is rapidly approaching the two-year mark.
Small shipping companies are beginning to operate on long-haul routes with smaller vessels. Also, carriers have chartered ships in Asia to manage some Pacific routes, reminiscent of patterns observed during the pandemic but moving more quickly as all parties involved have recent lessons in mind.
In the volatile market, adapting and finding solutions to these challenges into opportunities is crucial. This is why ExFreight offers instant door-to-door shipping rates for both domestic and international shipments. The platform allows users to input their shipping information, improving operational efficiency. Additionally, shipments are tracked via GPS, enabling customers to monitor the location of their cargo in real-time, which is especially valuable during port congestion and delays. By providing road transportation services and maritime and air import and export services, ExFreight offers a comprehensive solution for companies seeking to manage multiple modes of transportation with a single provider. The company also handles FCL, LCL, and air freight, providing flexible options that adapt to market needs and shipment volumes.
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